Many of the dealers and integrators who own companies in the security industry have what is called a “lifestyle business,” meaning the business brings in enough profits for the owners to live in nice homes, drive great cars, and travel in style. While the owners may appear or may truly be living a comfortable lifestyle, this can change when it comes time for retirement, if a business owner is not prepared.
Preparation for retirement begins with finding out what your business is really worth. Even if your company makes millions and millions each year, it does not necessarily mean you will have enough money to live the same life in retirement that you did before it. I’ve frequently met owners who assume their companies are worth far more than they are, and are surprised when they learn the true value come sale time.